On Thursday, at 11:00 GMT, the Bank of England is scheduled to hike interest rates. The Official Bank Rate is expected to be hiked up to 1.00% from the 0.75% level.
On Friday, the US Dollar and the Canadian Dollar are set to react to the monthly US and Canadian employment data. Among the data will be the employment changes and unemployment rates of the two countries.
GBP/USD short-term review
The surge was expected to test the resistance of the 1.2590/1.2615 zone. This range had acted as resistance during the previous week. Moreover, the zone was being strengthened by the 200-hour simple moving average and the weekly simple pivot point. A move higher would result in the pair possibly slowing down at round exchange rate levels, as there is no technical resistance as high as the weekly R1 simple pivot point at 1.2801.However, a potential bounce off from the zone could look for support in the 1.2450 mark, before approaching the last week's low level zone at 1.2413/1.2423.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the March and April low level zone failed and the channel down pattern, which guided the rate since early 2021 also failed. On the chart, we have marked the low levels of 2020, which could act as support.Daily chart
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Traders are long
On Wednesday, traders were 67% bullish, as 67% of trader open position volume on the Swiss Foreign Exchange was in long positions.
In the meantime, pending orders in a 100-base point range around the pair were 62% to buy the GBP/USD.
On Wednesday, traders were 67% bullish, as 67% of trader open position volume on the Swiss Foreign Exchange was in long positions.
In the meantime, pending orders in a 100-base point range around the pair were 62% to buy the GBP/USD.